Nasdaq Futures have bounced back from a lower level, recovering the central pivot and sticking to the overall market trend. Although there have been attempts to break through 26036, the market continues to face repeated setbacks, keeping it within established boundaries. Since December 30, the overall price pattern has stayed the same. The Nasdaq Futures desk has observed higher lows forming. Price movements within set ranges continue to influence the market, with three unsuccessful attempts to push past the upper limit since November 2025.

Market Dynamics On The Daily Chart

On the daily chart, Nasdaq Futures jumped from 25051, reclaiming the central pivot of 25405. However, it struggles to break the resistance area between 25794 and 26036. Unless it can move above 26036, the market remains stable within its defined limits, with higher lows indicating consistent progress. As the London session begins, Nasdaq Futures is trading at around 25706, just above the central pivot. With key resistance levels at 25794 and 26036, the market is preparing for either a breakout above 26036 or further movement within these levels. Balancing stability while pushing forward is vital for potential changes in market structure. Current reports from other markets show gold prices continuing to rise towards $5,000 per troy ounce, while Bitcoin is experiencing volatility below $90,000. These observations aim to capture market behavior and structure, not to provide financial advice. With the bounce from 25051 and the reclaim of the 25405 pivot, we are closely monitoring the significant resistance at 26036. The market has repeatedly struggled at this level since late 2025, making it crucial for traders. This pattern of failure might lead to short-term strategies, such as selling call options with strike prices above 26200, to take advantage of the clear market range. This price behavior is in line with recent economic updates. The Consumer Price Index (CPI) report released on January 21st showed a 3.1% year-over-year increase, slightly above the predicted 2.9%. Ongoing inflation could limit expectations for quick rate cuts from the Federal Reserve, explaining the market’s reluctance to reach new highs. Consequently, we can expect that the 26036 barrier will remain significant in the short term.

Market Strategy And Opportunities

The options market appears to be factoring in this period of consolidation, with the Nasdaq 100 Volatility Index (VXN) remaining stable around the 18 level for the past week. This suggests that traders are not gearing up for a major breakout but are expecting continued balanced market activity. This calm atmosphere supports strategies that benefit from time decay and a lack of sharp price movements. In the upcoming weeks, this structure points to opportunities for selling premium around the established boundaries. We are considering strategies like selling put options below the recent higher low of 25051, which takes advantage of the evident buyer support. This approach allows us to earn income while the overall trend of higher lows holds. Our strategy needs to stay adaptable based on these key levels. A daily close above 26036 would signal a change in market dynamics, challenging our range-bound hypothesis and requiring a shift from selling calls to exploring long positions. Until that occurs, the cautious strategy is to trade within the defined support and resistance areas. This consolidation phase makes sense when we consider the strong rally in the fourth quarter of 2025, where the index rose over 12%. Markets often go through a balancing phase to process significant gains before making the next major move. We will continue to let the market’s reactions at these key levels shape our strategies instead of trying to predict outcomes. Create your live VT Markets account and start trading now.

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